Brazil sets price caps for Dec 20 auction

November 16 (Renewables Now) - Brazil's power sector regulator Aneel approved recently the price ceilings for the December 20, 2017 new power generation auction.

This tender will contract power from wind, hydro and thermal plants that use biomass, coal and natural gas resources. Among the renewables, biomass has the highest maximum bidding price, starting at BRL 329 (USD 99.3/EUR 84) per MWh.

In all, the country registered 53,424 MW of projects that want to participate in the bidding process. More details are available in the table below.

Source

Registered capacity

Price cap in BRL

Wind

26,651 MW

276 per MWh

Biomass

2,068 MW

329 per MWh

Hydro

1,266 MW

281 per MWh

Natural Gas

21,560 MW

319 per MWh

Coal

1,880 MW

329 per MWh

The government will negotiate contracts for specific volumes of electricity, awarding power purchase agreements (PPA) with a 30-year period for hydro, 20-year for wind and 25-year for the remaining soruces. Power supply is scheduled to begin on January 1, 2023.